Ratios for 2-3 yr olds will change from 1:8 to 1:5.
An average centre would accommodate 16 2-3 year olds.
Based on the national average daily fee of $89, calculations below show the increased cost on a 16 place 2-3yr old room, per week.
2015
Ratio 1:8
16 children @ $89 per day, 5 days per week. $ 7120
Salaries. 1940 = $ 5180
2016
Ratio 1:5
Drop one placement daily
15 children @ $89 per day, 5 days per week. $ 6675
Salaries. 2761. = $ 3914
Reduced profit on an average centre per year $ 65,832.
I have calculated the salaries using a step one diploma and certificate III educators.
Using a trainee as the additional staff member could save another $320 per week, but would still reduce profit by $49,192 annually per average centre.
These calculations are based on a 2-3yr old room operating with full occupancy.
Cannot reconcile to the 2.8% - 3.2% increase on costs. No mention of reduced licensed places.
GEM Price at posting:
$3.41 Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)